Economic growth remains strong across much of the region with India, Malaysia, Thailand and the Philippines all recently reporting better than expected GDP figures. Despite this, inflation remains well contained in most countries, raising the prospect of further interest rate cuts over the coming months to help offset the impact of currency appreciation. India is the exception. The wholesale price inflation data have improved recently. However, other symptoms of overheating remain, such as surging asset prices, excessive credit growth and a growing trade deficit, which suggests to us that Indian monetary policy may yet need to be tightened further.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.